A WORKFORCE IN TRANSITION:

OIL AND GAS

SKILLS OF THE FUTURE

JUNE 2018
 Table of Contents

Foreword 3

Introduction 5

Changing regulations 6

Automation and data analytics 11

Application of the manufacturing process 16

On the horizon 20

Conclusion 21

Acknowledgements 22

A Workforce in Transition: Oil and Gas Skills of the Future 2

FOREWORD
It has been three years since PetroLMI released its study Shifting Priorities
and a Shifting Workforce,1 a close look at the impact industry-wide trends
were having on the makeup of Canada’s oil and gas industry workforce.

Since then, the industry has undergone one of the
most difficult downturns in its history, experiencing
a restructuring that saw a 25% reduction of the
workforce. In addition, many of the occupations and
skills previously required to support the exploration,
development and production of Canada’s oil and
gas resources have changed or have been eliminated.
In Shifting Priorities and a Shifting Workforce PetroLMI
examined three trends: new technologies that were
unlocking hard-to-reach, technically complex
1
https://careers-oil-gas.s3.amazonaws.com/publications/8/en/shifting_workforce_report.pdf
unconventional resources; the focus on cost-
management strategies to improve financial returns
and productivity; and, the need to diversify into new
and expanded markets. Fast forward to today and these
trends have not only intensified, but add to those new
government regulations, a rush towards adoption of
automation and data analytics technologies and the
standardization and advancement of manufacturing
processes in the development of the nation’s resources.
The result is a change of pace unlike the industry has
seen before.

A Workforce in Transition: Oil and Gas Skills of the Future 3

In the following report, A Workforce in Transition: Oil and
Gas Skills of the Future we look at these three significant
developments that will shift skills and occupations.
Following the election in 2015, the federal government
began the process of renewing the regulatory framework
which governs how major resource projects are
approved in order to balance economic growth with
environmental sustainability. The new framework gives
the general public greater say in how the country’s
resources are developed. Indigenous communities
also have more involvement at the planning stage of a
project, and an opportunity for more economic benefits
from the full life cycle of a project.
With all of this additional change
comes challenges and opportunities
for Canadians working in the oil and
gas industry and for those who are
looking to become part of it.
The federal and most provincial and territorial
governments also agreed on the Pan-Canadian
Framework on Clean Growth and Climate Change
designed to reduce carbon dioxide and methane
emissions. A number of provinces, including Alberta,
have instituted a carbon tax regime as part of that effort.
Secondly, with digital technologies such as automation
and data analytics evolving and proving out in other
sectors of the economy, Canada’s oil and gas industry
is quickly adopting these technologies to improve
productivity, safety and profitability.
2
https://www.canada.ca/content/dam/themes/environment/documents/weather1/20170125-en.pdf
A Workforce in Transition: Oil and Gas Skills of the Future
Lastly, oil and gas producers and operators are
also importing best-in-class processes from the
manufacturing industry in an effort to standardize and
streamline production, to further reduce costs and
increase profitability.
With all of this additional change comes challenges
and opportunities for Canadians working in the oil and
gas industry and for those who are looking to become
part of it. This report examines just that – where the
opportunities lie for the creation of new and interesting
careers and those occupations that will be on the
decline, if not eliminated.
We believe many of the new or emerging job
opportunities will be appealing to workers who are
seeking challenging, technology-driven occupations,
such as directing automated rig equipment, mapping
paths for autonomous trucks or managing large
amounts of technical data. More workers will be required
to support energy diversification and efficiencies,
designing and building wind or solar installations.
Meanwhile, strong communications and stakeholder
relations skills will be essential whether consulting with
the public or working with Indigenous partners to create
economic development plans.
2
The result of all of these changes is the oil and gas
industry will need to not only adapt the way it conducts
its business, but also who it employs.
Carol Howes
Vice President, Communications and PetroLMI ,
Energy Safety Canada
4
INTRODUCTION
This report examines the impact of key trends on Canada’s oil and gas industry and
provides an in-depth analysis of how these trends will affect the industry’s workforce.

The following three trends were identified as those trade associations representing the exploration and
impacting shifts in workforce requirements, occupations production (E&P)2, oil sands, oil and gas services,
and skills over the next three to five years: pipeline and midstream sectors. These insights are
backed by extensive secondary research on key
proposed and enacted federal and provincial legislation,
• Regulatory changes driven by the
automation and data analytics in the Canadian labour
federal and provincial governments

market in general and specifically in the oil and gas
• Implementation of automation and sector, and adoption of new operating standards in the
data analytics technologies
 industry.

• Application of manufacturing processes The research gathered will inform workforce planning,
on the development of resources
 career decisions and education and training
requirements. In addition, this research will be used
in the development of upcoming PetroLMI labour
market forecasting and the development of career
The insights provided in this report result from interviews
planning tools and information.
with 16 industry leaders from private companies and

2
Exploration and production of oil and gas for onshore and offshore conventional and unconventional reserves except oil sands.

A Workforce in Transition: Oil and Gas Skills of the Future 5

CHANGING REGULATIONS
Canada’s oil and gas industry is adapting to a number of regulatory changes
proposed in the last three years as governments respond to public concerns
about the environmental and social impacts of resource development.

• The federal government launched a restructuring of • As part of a new Climate Strategy, the federal
the regulatory framework3 governing major project government and almost all of the provincial and
approvals and in February 2018 introduced the territorial governments agreed to the Pan-Canadian
Impact Assessment Act (IAA)4 and the proposed Framework on Clean Growth and Climate Change to
Impact Assessment Agency of Canada to conduct address issues surrounding climate change, including
and co-ordinate impact assessments for designated a tax regime on carbon dioxide emissions through the
projects.5 This process includes a new, early planning 2018-2023 time period.
phase with expanded Indigenous and public input
• Methane emission reductions were also targeted by
on the project and the impact assessment. It requires
new federal and provincial regulations, with a goal of
a review not only of environmental impacts but
reaching a 45% reduction in emissions by 2025.
potential changes in health, social and economic
conditions should the project proceed. The following outlines the impacts of these regulatory
changes on the workforce in Canada’s oil and gas
industry and more specifically its sub-sectors.

How does the new review process work? *Regional and strategic assessments would be proactively conducted outside of individual project reviews.
This will help inform project assessments, manage cumulative impacts and support decision-making.

Step 1: Step 2: Step 3: Step 4: Step 5:

Early Planning Impact Statement Impact Assessment Decision-Making Follow-up, Monitoring
and Compliance
· Proponent prepares Agency assesses Impact Minister of ECCC & Enforcement
draft Impact Statement Statement and prepares determines public
· Agency reviews for Impact Assessment interest · Indigenous and
conformity with Impact Report ------ OR ------ community monitoring
Statement Guidelines ------ OR ------ committees, as needed
and posts on the Cabinet determines · Compliance &
Registry for public Assessment by Review public interest enforcement by the
1. Impact Assessment
Cooperation Plan comment Panel or Joint Review Agency and Federal
• Indigenous Engagement Panel Authorities or by
and Partnership Plan life-cycle regulator
• Public Participation Plan
2. Tailored Impact Statement
Guidelines
3. Permitting Plan Impact Statement Assessment Report Decision Statement

Deliverable Public participation & transparency Cooperation with jurisdictions Engagement with Indigenous Peoples

SOURCE: GOVERNMENT OF CANADA

3
https://www.canada.ca/content/dam/themes/environment/conservation/environmental-reviews/ia-handbook-e.pdf
4
https://www.canada.ca/en/services/environment/conservation/assessments/environmental-reviews/environmental-assessment-processes.html
5
Major projects that have potential for significant adverse environmental effects in areas of federal jurisdiction are called designated projects and require federal review.

A Workforce in Transition: Oil and Gas Skills of the Future 6

Impacts of the IAA
The implementation of the IAA will have an effect on the
skills required and the roles created in all sub-sectors of
Canada’s oil and gas industry.
Increased need for public and Indigenous consultation
in the project planning stage is expected to generate
much more demand for communication skills and the
ability to curate large amounts of information gathered
during the consultation process.
The new review process also has a requirement to
include Indigenous traditional knowledge early in
project planning, so that will require those with expertise
in traditional land use practices, decision-making
processes and areas of cultural significance.
Requirements to assess and mitigate the health and
socio-economic impacts of proposed projects, along
with environmental impacts, will also generate a
number of new or expanded roles, including public
health specialists, economic development specialists,
sociologists, biologists and other natural science
professionals.
“With these new regulations and the
need for compliance, we’re going to
need expertise on water technology,
wildlife like caribou, and on entire
ecosystems.”
Gary Leach,
President, Explorers & Producers
Association of Canada
A Workforce in Transition: Oil and Gas Skills of the Future
Pipeline and midstream
With pipelines often covering
hundreds and even thousands
of kilometres across the country,
broader consultation with the
public and Indigenous communities will greatly increase
the need for workers with strong communication and
data gathering skills, as well as the ability to identify and
address key issues.
Identifying and addressing any health and socio-economic
issues along pipeline routes will require experts in
economic development to help communities build
capacity in order to take part in business and work
opportunities; social scientists to identify and mitigate
any negative community impacts; and, public health
professionals.
More effective emergency response planning and spill
response and remediation will result in an additional
need for biologists and natural science professionals to
help develop plans for ecosystems along these pipeline
routes.
Exploration and production
and oil sands
While E&P and oil sands companies
tend to operate more locally than
the national reach of pipelines,
the implementation of the IAA will have similar
impacts on this sub-sector, increasing demand for
communication skills as the public consultation process
is expanded, and for those who can identify
and address Indigenous rights issues, along with
socio-economic and environmental impacts.
7
 Oil and gas services
Oil and gas service companies
don’t generally own production,
processing or distribution assets,
so the implementation of the
IAA will have a limited impact on this sub-sector’s
workforce, with two significant exceptions. Because
service companies tend to do the fieldwork in the oil and
gas industry, regulations requiring greater Indigenous
participation will create additional occupations and
potentially entire company departments dedicated
to ensuring that participation. Occupations to enforce
compliance and contracted obligations for more public
participation in these projects will also arise.
Impacts of the new
Climate Strategy
The new Climate Strategy’s focus on a carbon tax regime
and methane emission reduction goals of 45% by 2025
is also expected to create demand for broader skills and
new occupations.
Exploration and production
Most large E&P companies already
have the structures in place to
measure and monitor carbon
emissions. But, efforts to eliminate
emissions where it is financially advantageous to do
so will increase and with them new opportunities for
engineers and technologists to implement emission
reduction technologies.
Likewise, the new methane emissions rules will
create new roles and expanded skill requirements for
measurement, mitigation and reporting.
A Workforce in Transition: Oil and Gas Skills of the Future
Oil sands
In the oil sands sub-sector
companies expect to see an increase
in requirement for expertise and
knowledge of how to navigate
compliance standards.
Oil sands operators will also be looking for engineered
solutions to reduce and eliminate emissions, creating
new opportunities for engineers with the right skills.
Oil and gas services
For oil and gas service companies,
methane emission reduction
regulations will create new
opportunities in measuring,
mitigating and monitoring these emissions. Methane
leak detection will become a new occupation.
With more electrification of the oil and gas industry
expected and service companies diversifying into the
power market, this will require additional skills in battery
technology, or jobs designing and building wind
or solar installations.
Pipeline and midstream
New occupations in leak detection,
methane monitoring and mitigation,
and regulatory compliance are all
expected to be added in the pipeline
sector. Pipeline operators may also look to replace
natural gas power at facilities such as compressor
stations with sources of renewable energy such as wind
or solar. This will create new opportunities to install and
maintain the new sources of energy.
8
New regulations could create Likewise, the new climate change framework and efforts

workforce challenges to reduce carbon dioxide and methane emissions are

A combination of these new regulations and
government policy changes have the potential to create
uncertainty among investors and may impact capital
investment in Canada’s oil and gas industry, resulting
in a reduction in a range of roles particularly those in
engineering, procurement, fabrication and construction.
Many highly skilled professionals, including engineers
and technical specialists, such as fabricators, (where
there is high international demand for their services)
could be at risk of leaving the Canadian workforce to seek
employment elsewhere.
expected to impact the existing labour force as cash
flows traditionally spent on capital projects are diverted
to emissions management.
In summary, however, the new regulations will bring a
growing demand for broader skills and new occupations
that address and measure emissions, apply technologies
to help reduce emissions, monitor emissions and help to
prove compliance to regulators.

Where do methane emissions come from in the natural gas supply chain?

Natural gas production

& processing Producing wells
• Well completions, blowdowns
and workovers
• Reciprocating compressor rod packing
• Processing plant leaks Gathering lines
• Gas-driven pneumatic devices
• Venting from glycol reboilers on Processing plant
dehydrators Compressor stations

LNG or
propane/air
Transmission lines plant
Gas transmission
• Venting of gas for maintenance or repair of Underground storage Large volume
pipelines or compressors customer
• Centrifugal compressor seal oil degassing City gate
• Leaks from pipelines, compressor stations regulators/
meters

Regulator/meter
Gas distribution
• Leaks from unprotected steel mains and Commercial Residential
service lines customer customers

• Leaks at metering and regulating stations

• Pipeline blowdowns Distribution mains (lines)

SOURCE: ICF INTERNATIONAL

A Workforce in Transition: Oil and Gas Skills of the Future 9

IAA
Impacts of the new regulations on occupations
and skills:
• Increased need for stakeholder
communications, consultation
and data collection.
• Expertise in Indigenous
traditional ecology, such as
land and resource use, political
process and heritage sites.
• Expertise in helping Indigenous
communities create economic
development plans and building
business and workforce skills.
• Increased need for natural
science professionals such
as biologists and related
technologists.
• Expertise in managing safety
systems, safety communications
and emergency response.
New Climate Strategy
• Expertise in compliance
and regulations.
• New and expanded
measurement, mitigation
and reporting occupations.
• Skills required for renewable
energy installation and
operations.
• Knowledge of electrical
regulations and power
grid expertise.
• Skills related to carbon and
methane mitigation.
Alberta government programs
to spur activity
Alberta government programs will
create demand for workers over the next
three to five years. The Alberta Energy
Diversification Act (EDA)6 is providing up
to $2 billion in tax credits to encourage
construction of new petrochemical
facilities and facilities to capture natural
gas liquids, for the manufacturing
of petrochemical feedstock, such as
ethane, methane and butane.
While the implementation of the EDA
will not require any new skills
or occupations, the legislation is
expected to support an estimated
8,000 construction jobs and hundreds
of jobs in operations.
The Alberta government is also
loaning the Orphan Well Association7
$235 million to speed up the
abandonment and reclamation of
the province’s orphan wells and sites,
those that are left with no one to pay
for clean-up, often due to bankruptcy.

This effort will increase demand for

service rig personnel, well cementing
and environmental services.

6
https://www.alberta.ca/energy-diversification-act.aspx
7
http://www.orphanwell.ca/

A Workforce in Transition: Oil and Gas Skills of the Future 10

AUTOMATION AND DATA ANALYTICS
Similar to many other industries facing intense competition in the global market,
Canada’s oil and gas industry is looking to automation and the use of data analytics
to improve operations and decision-making and to increase its productivity
and profitability.

The use of automation technologies is already widespread. The greatest gains in productivity for Canada’s oil and
It touches all sub-sectors of the industry. gas industry will come from using data analytics to sort
the massive amounts of information from connected
To date, automation efforts have largely supported
field and office systems and identify opportunities for
workers to be safer and more efficient rather than
improvements. IT technologists and technicians will be
eliminating jobs. It’s expected this trend will only
required to inspect, clean and transform data. There will
continue as more mundane, repetitive tasks are
be skills in demand to model data along with industry
automated, freeing up workers to focus on higher
knowledge to apply what is learned.
value tasks.
While data scientists are not new to the oil and gas
As a greater number of tasks are automated across the
industry, their role will increase considerably in the
industry, Canada’s oil and gas workforce will need to be
next three to five years as analytics are applied to a
digitally literate along with having the more traditional
greater variety of data streams to improve the industry’s
mechanical aptitude expected in the industry. It will also
productivity.
need to be more innovative, creative and willing to look
for potential productivity improvements as automation That said, not all oil and gas companies will be impacted
takes over these tasks. the same way by the adoption of automation and data
analytics. The low commodity price environment of
As more and more equipment becomes connected,
the last few years stressed the financial ability of many
security concerns will also increase, creating demand
companies to invest in digital technologies. Companies
for digital security specialists to protect data and
also require a certain scale to benefit from the use of
processes. Meanwhile, the digitization of oil and gas
automation and data analytics.
field equipment will increase demand for information
technology and instrumentation technologists to install,
maintain and upgrade systems in the field.

A Workforce in Transition: Oil and Gas Skills of the Future 11

 The digitization of the oilfield is having a significant impact on the oil and gas industry. Directional drilling and
downhole measurements are being automated, reducing workers during drilling operations.

Data analytics are already being used to inform decision-making on the placement of wells and completions strategies. As
sensors become attached to more and more equipment, data will be applied to more processes in finer detail with further
improvements in productivity of machinery and equipment.

Over the next three to five years, artificial intelligence and machine learning technology will likely be applied to data
analytics to replace specific industry knowledge possessed by individuals in sophisticated occupations. Rather than
aiding in decision-making, increasingly machines will make their own decisions based on a huge number of data points.

Digitizing the future oil field

Tablet/smart glasses
8 Engineers utilize virtual models on tablets
and augmented reality data on smart
glasses to perform maintenance

Delivery drones
On-shore drones
7 deliver parts from
the warehouse to the 3D printers
1 Surveillance drones
6
off-shore rig Parts and tools required to fix the issue are
Sensors
Sensors on the rig detect 3a Drones investigate the off-shore rig and
share photos/live videos in real-time
printed in real-time using 3D printers

abnormal temperature

Integrated operations center (IOC)

2 IOC engineer receives alert and performs
diagnosis via interactive 3D model

Real-time
3b request oilfield
services (OFS)
IOC identifies required
services and issues service Real-time analytics
Smart devices
request to OFS vendors; best
bid is accepted in real-time 4 Predictive data analytics determine
maintenance needs based on surveillance
Engineers receive alerts and
data; integrated supply chain orders parts 5 incident details on their smart
watches/mobile devices and
prepare for service

SOURCE: PWC

A Workforce in Transition: Oil and Gas Skills of the Future 12

 How does the oil and gas industry use “The expertise that will be
automation and data analytics? required will predominately
Remote Asset Monitoring come from science or
1 Collecting and analyzing sensor data related to flow, temperature,
engineering trained
vibration and integrity to improve operational safety and performance-
related decisions (e.g., downhole drilling sensors). individuals with excellent
Remote Asset Operations
computer and analytic
2 Developing systems to operate plants and facilities from a remote skills. These individuals will
location. The intent is to reduce the on-site complement of staff, thereby
increasing operating efficiency and personnel safety (e.g., off site plant
be required to analyze large
control centres). amounts of raw data using
Predictive Maintenance specialized software that
3 Utilizing predictive data analytics and condition-based maintenance transforms, organizes and
approaches to improve asset availability and reliability (e.g., predictive
maintenance of electric submersible pumps, mining truck tire failure).
models the data in order
to draw conclusions and
Production Asset Optimization

4 Utilizing specialized sensors to monitor and data analytics to identify support decision-making.”
improvements in complex operations (e.g., Steam-assisted Gravity
Drainage or SAGD steam/production optimization, optimization of field David Humphreys,
operations activity). Vice President of Operations,
Remote Asset Inspection
Birchcliff Energy
5 Employing remotely controlled devices that use imaging (video, Infrared
or IR, X-ray) and other sensors to complete inspection and detection tasks
more efficiently and safely (e.g., pipeline inspection drones).

Automated Production Asset Operations

6 Installing robots or other automated equipment to perform operating,
assembly and maintenance tasks in 24/7 continuous and safety-critical
operating environments. Machine intelligence allows the equipment to
sense conditions in their local environment, recognize and solve basic
problems (e.g., self-driving mining trucks).

Fleet Management
7 Obtaining real-time data—through the use of wireless networks,
sensors and video analytics—from on board sensors to improve asset
identification, tracking, utilization and logistics operations (e.g., vehicle
telematics, Global Positioning System or GPS tracking).

Field Productivity
8 Maximizing worker efficiency by providing wireless mobility that enables
on-demand access to field data, engineering drawings and inventory and
communication with centralized operations experts (e.g., field tablets).

A Workforce in Transition: Oil and Gas Skills of the Future 13

 Exploration and production
In the E&P sub-sector automation of
repetitive manual tasks is expected to
only increase along with automation
of low-level cognitive tasks. While
automation is still largely seen as a way to support
workers in this sub-sector do their jobs better more
low-level administrative jobs could be completely
automated within the next five years.
Data analytics are expected to have the greatest
potential to cut costs and improve a company’s
profitability. Companies are expected to increase their
workforce of data scientists as analytics are applied to
more areas of their operations. The role of technologists
who manage the data will also increase.
Oil sands
Mining operations in the oil sands
is one area where automation will
reduce the workforce. Driverless
automated heavy haulers are now
in operation at Suncor and are expected to be rolled
8
out to other operations over the next three to five years.
The rollout could result in thousands of job losses among
heavy equipment operators. Automation will create more
demand for heavy equipment operators trained with graders
or instrumentation technicians, as driverless vehicles need
to be maintained, repaired and updated on a regular basis.
Oil and gas services
The automation of oil and gas
services processes and the
introduction of data analytics are
in early stages of adoption in
the oil and gas services sector.
However, it is already rapidly increasing productivity in
this sub-sector, allowing more work to be accomplished
8
http://www.suncor.com/newsroom/news-releases/2173961
A Workforce in Transition: Oil and Gas Skills of the Future
with less equipment and fewer workers. For example,
the number of active rigs has declined in recent years
with the drop in oil prices by about one-third, but
production has continued to increase.
Increasing use of automation means workers will
continue to need mechanical skills to install or operate
equipment, but they will also need to understand and
be able to operate the newer electronic systems that are
part of the machinery and equipment.
New occupations focused on installing, servicing and
updating automated systems on mobile machinery such
as drilling rigs and hydraulic fracturing equipment are
already emerging as these systems come into wider use.
Skills in interpreting data and using the information to
improve oil and gas service processes will be needed
as more data analytics delivers actionable information
back from the field.
Pipeline and midstream
The pipeline and midstream sub-
sectors have been early adopters of
automation technologies to improve
both the safety and efficiency of their
operations.
Additional skills in processing data and interpreting data
being generated by the technologies will be needed, as will
IT and instrumentation technologists to install and maintain
the expanding array of sensors and other equipment.
New technologies including in-line pipeline inspection
already generate large amounts of data for companies,
providing more detailed and more fundamental
information on the condition of pipelines. More data
scientists will be needed to create systems to interpret
this data, which in turn is used for better maintenance
and operations and to ensure pipeline integrity.
14
Why 61% of oil and gas executives believe
big data and analytics will be critical
Connected
Connect directly with the supply chain
to allow relevant updated information
to flow allowing anyone to know what
is required.
Innovate
Utilizing up-to-date data will
enable companies to innovate
ahead of the industry.
Live
Increase personal safety and improve
asset integrity with predictive
maintenance and faster, better
decisions using real-time analytics
direct from the platform.
Direct
Allow decision makers on the front line to
utilise data immediately to reduce downtime
and increase efficiency.
Impacts of automation and data analytics on occupations and skills
• Increased need to collect and analyze data and to
build and maintain databases.
• Increased need for software engineers, data
management and analytics specialists to measure
operations in real-time.
• Increased need for instrumentation technologists
as sensors are applied to more field equipment
and machinery.
• Technological literacy skills for field workers in a
digital environment.
A Workforce in Transition: Oil and Gas Skills of the Future
Global
Share data across global internal network
instantaneously, allowing collaborative
decision making to happen faster and
more effectively.
Automated
Automating PR’s, PO’s and invoices
with vendors and suppliers will hugely
increase transactional processes.
Automating the shipping documentation
associated with specific PO’s will also
increase the full suply chain process.
Transparent
The ability to have a high-level and
tranparent view of the whole supply
chain and business allows staff to
focus and resolve critical issues more
effectively.
Collaborative
Allowing multiple parties the ability to
collaborate on specific data in real-time
speeds up the decision making process.
SOURCE: LLOYDS Q&C TECH REPORT 2015
• Increased need for technology-based
competencies, creative problem-solving, and
the ability to manage change to analyze data in
real-time in the field, conduct course corrections
and innovate.
• Increased need for IT support roles to support
and maintain automated equipment.
15
APPLICATION OF THE MANUFACTURING PROCESS
As development of Canada’s oil and natural gas resources mature, the oil and gas
industry is applying manufacturing processes such as standardization and
replication to create additional efficiencies, cut costs and improve productivity.
The supply chain of goods and services to support
production and development from multiple wells from
one well pad at many operations are being re-organized
as part of this manufacturing model to streamline
procurement and improve logistics. The goal for
producers and service companies is to equip, drill and
complete identical or similar multi-well pads repeatedly
and implement improvements into future development.
A number of technologies have emerged, enabling the
implementation of this manufacturing process. These
include new generation drilling rigs that are capable
of drilling extended reach horizontal wells. These new
rigs are also highly automated, with automatic pipe
handling systems and the capability to walk from well
to well without having to be torn down, making the
drilling of multi-well pads economic.
Improved directional drilling technologies allow for
better placement of horizontal laterals, enabling
multiple wells to better target resources.
Improved well completions technologies , meanwhile,
allow for more stages of fracturing and greater fracturing
intensity.
A Workforce in Transition: Oil and Gas Skills of the Future
Oil and gas operators are also creating centralized water
sourcing, recycling and disposal facilities.
The application of all of these technologies, combined
with manufacturing processes, are having multiple
effects on the skills required.
Increased efficiency and productivity from oil and gas
wells means fewer wells are needed to maintain or grow
production, but there are more services required at
each individual well. Demand for workers in traditional
services such as oilfield construction, rig moving, water
hauling and well site maintenance is declining.
But with the increasing numbers of wells on one well
pad construction planning expertise is needed to ensure
there is optimal subsurface drainage and the correct
siting and sequencing of surface operations.
Meanwhile, more expertise in logistics is required to
ensure materials arrive at the correct time so operations
are not delayed, or if materials need to be stored.
Logistical and project management skills will be in
greater demand as multiple drilling, completions and
facility construction occurs simultaneously on these well
pads.
16

Exploration and production
As E&P companies bring more
manufacturing processes into their
developments, there will be further
standardization and replication
of processes and equipment, reducing the amount
of custom engineering and fabrication required.
Oil and gas operators are also increasingly assuming
responsibility for procurement of services and materials
as they standardize their operations. The role of the
procurement specialist therefore, is becoming more
sophisticated as E&P companies move from project-
based procurement to creating supply chains covering
multiple projects over a longer timeframe.
A Workforce in Transition: Oil and Gas Skills of the Future
Oil and gas services
The implementation of the
manufacturing process, along with
the technological improvements
enabling it, are already shifting job skills and creating new
occupational opportunities in the services sub-sector.
Work on construction access roads and well pads is
declining as a multi-well pad with horizontal wells drains
as much reservoir as 70 single vertical well pads would
have done in the past.
Innovations such as walking rigs are limiting occupations
supporting rig-moving activities. In the place of these
traditional oil and gas services occupations, expanded
skill sets are required in well construction planning, site
planning, procurement and supply chain management.
17
 Oil sands
Applying manufacturing processes to the construction of in situ oil sands facilities in Northern
Alberta - whether to help sustain or increase production - is also already underway. These
include standardizing designs, modularizing fabrication and replicating designs across multiple
well pads, in an effort to cut capital costs.

Modularization requires moving much of the construction of facilities from the field to offsite fabrication yards. While
this is not new, a greater volume of equipment and technologies are being attached at the fabrication yard.

As fabrication moves offsite, the focus of workforce planning declines and is replaced by a need for more complex
logistical and project management skills to ensure modules arrive in sequence onsite and on time.

Like other industry sub-sectors, the application of manufacturing processes to in situ oil sands development
reduces demand for engineering services, custom fabrication services and onsite construction services.

Meanwhile, the role of procurement and supply chain management personnel is changing as oil sands operators
move from sourcing services and materials on a project basis to longer-term relationships over multiple projects.

Potential benefits
of using the next
generation of in situ
oil sands technologies
The facility footprint is about 45% About 15% less equipment is needed.
smaller than existing thermal
oil facilities.

Construction would shrink from 7,000

to 3,000 hours.

The number of valves on a well pad is

cut to 30 from 230. SOURCE: SUNCOR ENERGY

A Workforce in Transition: Oil and Gas Skills of the Future 18

 Pipeline and midstream
As oil and gas production increases, both the pipeline and midstream sub-sectors of the
industry can expect increasing need for new transportation and processing infrastructure,
creating demand for engineering construction and operational personnel. With a focus to bring
expansion on in phases, it means the construction workers going forward can remain working
continuously at the same site.

Midstream operators meanwhile are moving into more petrochemical feedstock production and into more
export markets such as those based on propane. This is already generating a number of newly required skills and
occupations in the marketing and sales of petrochemical products.

Impacts of the manufacturing process on occupations and skills

• Increased need for geotechnical, engineering
and supply chain expertise.
• Expertise in well pad planning, operations
sequencing, construction, materials handling and
logistics to support more wells and equipment on
well pads.
• Management and multitasking skills for drilling
and completion engineers and other specialists
to work on multiple projects concurrently, from
a central location.
• Expertise in building water hubs with pipelines
to well pads, water treatment and recycling
facilities.
• Decreased need for engineers as facilities are
replicated in multiple locations.
• With increased modularization, shifting work for
electrical and instrumentation installations from
remote areas into lower cost urban environments.
• Increased required skills in project management to
manage the growing complexity of these projects.
• More negotiating skills for salespeople in the
services sub-sector to match their customers’
newer and more sophisticated supply chain and
procurement systems.
• Increased need for service technicians, mechanics
and other maintenance personnel to keep
equipment functioning.

A Workforce in Transition: Oil and Gas Skills of the Future 19

ON THE HORIZON
While this report focuses on three significant trends there
are other emerging trends that may increase demand
for specific skills and occupations in the industry. These
include:
• The global shift towards using natural gas
for industrial and power applications
• Increasing global demand for feedstock
for petrochemical production
 already investing significant funds to move these projects
• Developing technologies to decarbonize oil
and gas production and processing
A global shift towards using natural gas for industrial
and power applications is expected to increase natural
gas demand, creating a window of opportunity for LNG
exports for Canada. Should a major project proceed in
the next three to five years, constructing an LNG export
facility and new pipelines to supply the facility will create
opportunities for the engineering, procurement and
construction workforce. One large two-train facility will
create 5,240 construction jobs and a supply pipeline will
create an additional 4,260 jobs.9 Requiring about three
billion cubic feet of gas per day, a large export facility
would also have a positive impact on the overall E&P and
natural gas processing workforce.
With growing global demand for petrochemical feedstock
opportunities on the horizon, increased production of
natural gas liquids to feed the petrochemical industry or
to export will also create more occupations in the sales
and marketing of petrochemical products, chemical
9
https://careers-oil-gas.s3.amazonaws.com/publications/4/en/lng_report_final_online.pdf
A Workforce in Transition: Oil and Gas Skills of the Future
intermediaries and natural gas liquids to export.
Expertise in international business, currency trading,
transportation and foreign languages would be required
as exports increase.
An opportunity also looms for the decarbonizing of oil
and gas production and processing. There are a number
of emerging and start-up companies across Canada
developing technologies to capture carbon dioxide
and turn it into products such as fuels, chemicals and
cement additives. Canada’s oil and gas industry is
forward. The global market for these carbon-based
products is estimated to reach $750 billion in the next
decade and with that a number of new employment
opportunities are likely to arise. As many of these new
technologies become commercial, it will create work
for the traditional engineering and construction sectors
and new opportunities to sell, market and install these
technologies in Canada and abroad. Similarly, expertise
in areas such as international business, currency trading,
transportation and foreign languages will be required.
“The driller of tomorrow will have
tremendous leadership capabilities,
and will be able to mentor, coach
and motivate his crew.”
Mark Scholz, President,
Canadian Association of Oilwell Drilling
Contractors
20
CONCLUSION
Efforts to make Canada’s oil and gas industry more environmentally sustainable and
socially responsible, while remaining globally competitive, are changing skills and
occupations across all of its sub-sectors.
Balancing economic growth with environmental
sustainability is broadening the need for skills and
occupations not traditionally considered oil and
gas jobs. Increasing numbers of professionals in
natural sciences and environmental services will
find themselves working at production and pipeline
companies as they answer environmental challenges.
Indigenous knowledge is already being incorporated
into environmental studies, creating a new specialty.
Enhanced communications skills will be required in
earning and maintaining public support for energy
projects. Those who can answer the social, economic
and health concerns in communities affected by
development, will find career opportunities particularly
those with skills and experience working with
Indigenous communities.
The push to lower costs and increase productivity is
driving automation, data analytics and manufacturing
A Workforce in Transition: Oil and Gas Skills of the Future
processes throughout the oil and gas industry, building
on current occupational requirements and creating
new ones. Field workers will be expected to have both
mechanical and digital skills. They will be expected to
use data analytics to improve their decision-making and
work with data scientists to create solutions.
By combining a manufacturing model for oil and gas
development with automation, demand for traditional
skills is on the decline for Canada’s oil and gas field
workers and is being replaced by a need for expertise
in areas such as in supply chain management, logistics
and project management.
The potential exists for some occupations to disappear as
a result of pending regulatory and technological changes
to the oil and gas industry. However, oil and gas jobs of the
future include many of the skills that are required in other
Canadian industries today.
21
Acknowledgements
The Petroleum Labour Market Information (PetroLMI) Division of Energy Safety
Canada gratefully acknowledges the Government of Canada’s department of
Employment and Social Development Canada for the funding to undertake
and complete this study.
PetroLMI is also grateful for the time and expertise provided by petroleum
companies, industry associations and other stakeholders. Organizations that
have been interviewed or provided information are as follows:
• Beaver Drilling Ltd.
• Birchcliff Energy Ltd.
• Canadian Association of Oilwell Drilling Contractors
• Canadian Association of Geophysical Contractors
• Canadian Association of Petroleum Producers
• Canadian Energy Pipeline Association
• Canadian Energy Pipeline Association Foundation
• Canadian Natural Resources Limited
• Explorers & Producers Association of Canada
• Maritimes Energy Association
• Petroleum Services Association of Canada
• Seven Generations Energy
• Suncor Energy
• Trican Well Service
• Tundra Process Controls
• Unifor
A Workforce in Transition: Oil and Gas Skills of the Future
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Published June 2018
22
Overview
The Petroleum Labour Market Information
(PetroLMI) is a leading resource for labour
market information and trends regarding
Canada’s oil and gas industry. PetroLMI
specializes in providing petroleum labour
market data, analysis and insights, as well
as occupation profiles and other resources.

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